The energy prices are already significant for big energy consumers, like the steel industry.
Some foundries were already concentrating the production on the weekends, to somewhat lower the energy prices...
On top of high energy cost, materials for steel production come from Russia and Ukraine...
They try some alternatives like Brasil or Indonesia, but the transportation costs skyrocket...
And blocking steel production then blocks a whole range of industries...
High material costs then block the public investments planned by EU for post-Covid Recovery, because a lot of tenders get no participants and need to reevaluate material costs.
Issuing a new pubblic tender lasts around two months (and after two months it's already too late and they need new material costs):
Gare deserte, bandi ai quali partecipa una sola impresa, aziende che si rifiutano di firmare il contratto per l’assegnazione dei lavori. Sono questi i problemi che stanno incontrando gli enti locali nel realizzare gli investimenti programmati. Problemi che potrebbero essere l’antipasto di quello...
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Also, Italy exports a lot of electriconics for German autoindustry, that suffers a lot because of the situation (both energy and materials)... When the German production gets blocked, so does Italian as a secondary effect...
A lot of companies have already asked for public subventions in order not to close.
Gli effetti della guerra in Ucraina iniziano a farsi sentire sulle imprese italiane. Molte, infatti, cominciano a ricorrere alla cassa integrazione. A marzo le ore di cig ordinaria autorizzate dall’Inps sono state il 20% in più rispetto a febbraio. A pesare, insieme ai rincari energetici che si...
www.ilfattoquotidiano.it
The situation is already hurting EU economy.